Zero Co., Ltd. (9028) AI Stock Analysis

• Market Cap: ¥55.08B
• Dividend Yield: 4.21%
• Average Volume (3M): 84.03K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.78
• Revenue Growth: 5.04%
• EPS Growth: 72.34%
• Country: JP
• Employees: 2,647
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Dealerships
• EPS (TTM): 101.88
• Shares Outstanding: 17,560,242
• 10 Day Avg. Volume: 42,360
• 30 Day Avg. Volume: 84,026
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,556.00
• Price Target Upside: 7.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥3,556.00 ▲(7.76% Upside)

Zero Co., Ltd. scores well due to its strong valuation metrics, particularly the low P/E ratio and high dividend yield, which suggest the stock is undervalued. The company's solid financial performance, especially in cash flow management, further supports the score. However, the mixed technical indicators and concerns over revenue growth and profit margins slightly temper the overall outlook.

Positive Factors

Cash Flow Management

Effective cash flow management ensures the company can sustain operations and fund growth, providing long-term financial stability.

Operational Efficiency

Improved gross profit margins reflect strong operational efficiency, which can enhance profitability and competitive positioning.

Sustainable Business Model

A focus on sustainability aligns with global trends towards eco-friendly solutions, potentially driving long-term demand and growth.

Negative Factors

Revenue Growth Concerns

Inconsistent revenue growth can hinder future expansion and market competitiveness, posing a risk to long-term performance.

Net Profit Margin Challenges

Low net profit margins may limit the company's ability to reinvest in growth initiatives and improve shareholder returns.

Debt Financing Risk

High reliance on debt financing can increase financial risk, especially if market conditions change or interest rates rise.

Zero Co., Ltd. Business Overview & Revenue Model

Company Description

Zero Co., Ltd. (9028) is a innovative company focused on sustainability and environmental solutions, primarily operating in the sectors of waste management, recycling, and eco-friendly product development. The company is dedicated to reducing plastic waste and promoting a circular economy through its range of products and services, which include refillable packaging systems, biodegradable materials, and waste reduction technologies.

How the Company Makes Money

Zero Co., Ltd. generates revenue through multiple streams, primarily from the sale of its eco-friendly products and services. The company offers a subscription model for its refillable packaging systems, providing customers with a sustainable alternative to single-use plastics. Additionally, Zero Co. earns income from partnerships with businesses and municipalities looking to implement waste reduction strategies, including consulting services and technology solutions. Key revenue streams also include the sale of biodegradable materials to manufacturers and retailers, as well as potential licensing agreements for their proprietary technologies aimed at waste management and recycling.

Zero Co., Ltd. Financial Statement Overview

Summary

Zero Co., Ltd. presents a stable financial profile with strong cash flow management and operational efficiency. Despite concerns about revenue growth and profit margins, the company's balanced leverage and consistent returns on equity provide a solid foundation.

Income Statement

Zero Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin has improved over the years, indicating efficient cost management. However, the net profit margin has been relatively low, reflecting challenges in converting revenue into profit. The revenue growth rate has been inconsistent, with a notable decline in the most recent year, which could be a concern for future growth prospects. Despite these challenges, the company has maintained a stable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet of Zero Co., Ltd. reflects a stable financial position with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has been consistent, showcasing the company's ability to generate returns for shareholders. However, the equity ratio suggests that a significant portion of the company's assets is financed by debt, which could pose a risk if not managed carefully.

Cash Flow

Zero Co., Ltd. has demonstrated strong cash flow management, with a positive free cash flow growth rate and a healthy operating cash flow to net income ratio. The company has consistently generated free cash flow, which is crucial for sustaining operations and funding future growth. The free cash flow to net income ratio indicates that the company is effectively converting its earnings into cash, providing a solid foundation for financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.84B	147.84B	140.75B	132.86B	107.05B	92.17B
Gross Profit	21.75B	21.75B	17.67B	15.20B	13.13B	13.40B
EBITDA	15.43B	15.47B	11.41B	10.08B	8.64B	9.71B
Net Income	7.18B	7.18B	4.15B	3.44B	2.54B	3.63B
Balance Sheet
Total Assets	73.95B	73.95B	70.73B	56.56B	55.19B	50.94B
Cash, Cash Equivalents and Short-Term Investments	16.64B	16.64B	11.32B	5.94B	5.65B	5.91B
Total Debt	11.27B	11.27B	14.25B	7.29B	10.52B	10.62B
Total Liabilities	30.41B	30.41B	32.86B	22.72B	24.57B	22.64B
Stockholders Equity	42.90B	42.90B	37.21B	33.28B	30.07B	28.28B
Cash Flow
Free Cash Flow	10.74B	10.74B	8.45B	6.59B	1.26B	5.54B
Operating Cash Flow	12.86B	12.86B	11.23B	8.78B	3.95B	8.59B
Investing Cash Flow	-2.84B	-2.84B	-4.66B	-2.17B	-3.27B	-3.10B
Financing Cash Flow	-4.61B	-4.61B	-824.00M	-6.29B	-1.61B	-4.36B

Zero Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9028, the sentiment is Positive. The current price of 3300 is above the 20-day moving average (MA) of 3238.00, above the 50-day MA of 3220.80, and above the 200-day MA of 2798.33, indicating a bullish trend. The MACD of 14.90 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 73.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9028.

Zero Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7134	78 Outperform	¥9.29B	12.49		2.77%	7.91%	8.30%
5589	76 Outperform	¥18.03B	12.28		2.65%	2.16%	-4.76%
9028	74 Outperform	¥55.08B	7.84		4.21%	5.04%	72.34%
8291	72 Outperform	¥30.62B	7.91		4.66%	-5.73%	-38.92%
7593	68 Neutral	¥59.16B	11.74		4.84%	8.88%	-25.45%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
9268	52 Neutral	¥25.26B	14.70		4.89%	50.37%	-148.77%

Zero Co., Ltd. Corporate Events

Zero Co., Ltd. Stock Gains Loan Margin Trading Status

Zero Co., Ltd. announced that its stock has been newly selected as a loan margin trading issue on the Tokyo Stock Exchange Standard Market, effective May 20, 2025. This selection is expected to enhance the liquidity and supply-demand balance of the stock, contributing to more active trading and fair pricing.